Launch of EIF's securitisation operations in Central and Eastern Europe

EIF is proud to announce its participation in the first leasing securitisation of SME- related assets ever launched in Poland. This high visibility transaction is among the largest securitisation deals structured in Central and Eastern Europe, and is the largest leasing securitisation closed to date in the region.

EIF was involved in the structuring of the transaction together with the arrangers State Street Global Markets LLC and Raiffeisen Zentralbank Österreich AG (RZB). The transaction was signed on 12th January 2006.

Terms of the transaction

EIF is credit enhancing the mezzanine notes in a securitisation of lease receivables originated by Raiffeisen-Leasing Polska S.A. EIF guaranteed the PLN 32.7m mezzanine notes (approximately EUR 8.6m) underpinning a total portfolio of PLN 640m (approximately EUR 167m).

European Investment Bank (EIB) also participated in the transaction, investing PLN 188m (approximately EUR 50m) in the senior notes, alongside Galleon Capital LLC.

This leasing securitisation transaction refinances some 13,500 individual vehicle leasing contracts with Polish small- and medium-sized companies (SMEs) and micro-companies. The originator has the option to transfer further receivables to the securitisation vehicle (ROOF Poland, Sp z o.o. - ROOF) on a monthly basis through a 3-year replenishment period.

Attractive instrument for originators and investors

Securitisation is an efficient means of funding and transferring the risk of a portfolio of loans or leases from their originator to investors via the capital markets. Securitisation transactions are widely used by banks, leasing companies and other corporations to obtain refinancing at attractive rates and to repackage the risk of asset portfolios so that it can be efficiently transferred to the capital markets.

Alessandro Tappi, Head of Guarantees and Securitisation at EIF, said: This transaction marks the start of a new cycle in the European securitisation market where we expect originators from the new Member States to play an increasingly important role. EIF is very pleased with the cooperation with State Street Global Markets and the Raiffeisen Group.

Francis Carpenter, Chief Executive of EIF, said: This deal is a milestone for the EIB Group, which was able to offer an attractive package to an originator especially committed to SME financing through the combination of the EIB investment in the senior notes and the EIF guarantee on the mezzanine tranche.

Facilitating SMEs financing in Europe

For the first time, EIB and EIF participated together in a transaction in order to facilitate the financing of SMEs within the European Union.

EIF's involvement will contribute to enhance access to lease financing for Polish SMEs, strengthening its key role in facilitating credit risk transfer to capital markets while diversifying its portfolio in terms of geographical reach and originator. Furthermore, Raiffeisen-Leasing Polska will use the proceeds from this securitisation transaction to extend new SME financing.